Operating and Support (O&S) Cost Key System Attribute (KSA) [Suggest Change]
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Primary Functional Area : Life Cycle Logistics
Key System Attributes (KSAs) are defined as, "System attributes considered most critical or essential for an effective military capability but not selected as Key Performance Parameters (KPPs). KSAs provide decision makers with an additional level of capability prioritization below the KPP but with senior sponsor leadership control (generally four star, defense agency commander, or principal staff assistant)."
(Source: DAU Glossary of Defense Acquisition Acronyms and Terms)
Measuring O&S cost provides balance to the sustainment solution by ensuring that the total O&S costs across the projected life cycle associated with availability and reliability are considered in making decisions. The O&S Cost KSA is to be computed using base year dollars. For consistency and to capitalize on other efforts in this area, all CAPE O&S cost elements, outlined in reference eeeee, will be used in support of this KSA. Energy costs shall be included in O&S cost, and will use the base year price throughout the assessment. All O&S costs are to be included regardless of funding source or management control. The O&S cost covers the planned O&S timeframe, consistent with the timeframe and system population identified in the Sustainment KPP. As part of the supporting rationale, provide the annual cost per system (for large systems such as aircraft, vehicles, ships, etc.) or fleet of systems (for networks or smaller systems such as munitions) upon which the O&S Cost KSA total is based. The O&S Cost KSA objective values are to be calculated in base year dollars as 10% less than the threshold value.
(Source: JCIDS Manual, page D-D-4, Appendix D, Enclosure D)
The Deputy Undersecretary of Defense for Logistics & Materiel Readiness, in memo entitled "Life Cycle Sustainment Outcome Metrics" (10 March 2007) established four sustainment outcome metrics: Materiel Availability, Materiel Reliability, Ownership Cost and Mean Down Time (MDT). The Joint Requirements Oversight Council (JROC) established Availability as a mandatory KPP, and Reliability and Ownership Cost as two supporting mandatory Key System Attributes (KSAs). Mean Down Time is not mandatory, but is recognized as vitally important and encouraged as a KSA when appropriate.
Subsequently, the JROC established two metrics to address availability and changed the name of the KPP from Materiel Availability to Sustainment. The Sustainment KPP separated Availability into two components, Materiel Availability and Operational Availability to provide fleet wide and operational unit measurements. To strengthen the emphasis on Operating and Support Costs, which for most programs constitute the majority of the Life Cycle Cost, "Ownership Cost" was changed to "Operating and Support Cost" in the revision to the JCIDS Manual dated 19 January 2012. https://acc.dau.mil/jcids
The fact that the Sustainment Key Performance Parameter (KPP) and the two supporting KSAs (Reliability and O&S Cost) are mandatory is not coincidental. Achieving high Reliability has a cost, as does achieving superior Maintainability and a high Availability. These Sustainment metrics taken together bound the trade space for "designing in" supportability and planning affordable life-cycle product support.
The establishment of O&S Cost as a mandatory KSA for ACAT I programs was intended to focus attention on O&S costs in making materiel readiness decisions. The JCIDS Manual directs the use of the Cost Analysis Improvement Group’s (now titled "Cost Assessment & Program Evaluation" (CAPE)) O&S Cost Estimating Structure.
Note that there is a difference between the Operations and Support Phase of the life cycle and Operating and Support Costs, which can occur in other phases as well as in Operations and Support. The Operations and Support phase of the lifecycle in a Department of Defense (DoD) weapon system begins when the system initiates operations and lasts until the operating unit removes the final system from operations. Operating and Support (O&S) costs are the costs of sustainment incurred from the initial system deployment through the end of system operations. Specifically, this consists of the costs (organic and contractor) of personnel, equipment, supplies, software, and services associated with operating, modifying, maintaining, supplying, training, and supporting a system in the DoD inventory.
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Page Information
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Page Views
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14,214
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Created on
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4/16/2010
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Modified on
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7/7/2016
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Last Reviewed
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7/7/2016
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